County to add new car line, first since 2008

Andrew DiFeo and his brother Joe DiFeo stand on the parcel of land where their new Volkswagen dealership is under construction on U.S. 1 on April 17, 2013. The car dealership, to be called St. Augustine Volkswagen, should be open by the end of the year.

For the first time in five years, St. Augustine is adding a new car dealership. Volkswagen of St. Augustine, owned by brothers Joe and Andrew DiFeo, will open sometime in November or December.

The dealership will bring the total number of new car dealers in St. Augustine to 10, joining Atlantic Dodge Chrysler Jeep Ram, Bozard Ford and Lincoln, Coggin Honda, Family Kia St. Augustine, Fields Cadillac, Hyundai of St. Augustine, Nissan of St. Augustine, St. Augustine Toyota, and Jack Wilson Chevrolet, Buick and GMC.

“We’re very optimistic about this project,” Andrew said on Wednesday, watching construction workers clearing and leveling the 3.5 acres that will be the new dealership’s home on U.S. 1 South. “This is an exciting time to be in this business, and St. Johns County has been good to us.”

Andrew opened Hyundai of St. Augustine, just up the road, in 2008. Until now, his Hyundai dealership was the city’s newest.

He said Volkswagen of America looks at “a lot of factors” before awarding a dealership to a new market area, and that Joe had been working on the VW deal for more than a year.

Andrew said those factors include the viability of the local market, the prospective dealer’s working capital, ability to secure financing and skills to successfully manage inventory and staff, as well as attract new clientele. They also look at what he called “planning volume,” meaning whether the land and facilities are appropriate to handle the inventory. He said the new dealership will start with 80-100 new vehicles and about 50 used ones.

“We’re very pleased that Volkswagen awarded us this dealership,” Joe DiFeo said. “Our family has a Volkswagen dealership in Linden, N.J. And Andrew has had a tremendous amount of success here with Hyundai.”

Andrew said new car sales are on the rise.

“There’s been a surge in sales over the past few years, a sign that the economy is turning,” Andrew said. “In 2009, new car sales were about 10.4 million nationally. By 2012, it was up to 14.5 million, and this year is projected to be around 15.5 million. Some have predicted that by 2015, it will be close to 17 million.”

The brothers are hoping that trend will make it easier on Joe’s venture. When Andrew started Hyundai of St. Augustine, things were not so good in the industry, he said.

“We weathered some tough economic times in 2008-09, but we made it through, going from less than 20 employees that first year to almost 60 now,” Andrew said. “And St. Johns County is a very business-friendly environment with a great employee base.”

He said that sales were up by 25 percent at Hyundai of St. Augustine in the first quarter of this year.

“We’re thinking Joe will have an easier ride than I did,” Andrew said. “There’s an extreme amount of optimism in the stock market right now, and a lot of positive signs economically.”

The DiFeo brothers are spending more than $4 million to build the new VW dealership. Andrew said there will be a small groundbreaking ceremony today at 11 a.m. at the construction site. “We’re both managing partners, but Joe will run the Volkswagen dealership, and I will continue to run the Hyundai dealership,” Andrew said. “It will be a sort of friendly competition.”

The brothers, who look almost like twins, are younger than many dealership owners. Andrew, 37, actually comes across like the older brother, but Joe has him beat by four years.

“I’m the quiet one,” Joe said. “He likes to take charge.”

“He used to torment me,” Andrew said. “So, this is getting even.”

They grew up in the family car business.

“We have gasoline in our blood, is what we like to tell people,” said Andrew DiFeo. “Our grandfather, Sam DiFeo Sr., started in the business back in 1948 in Jersey City, N.J.”

Joe, who had been selling used cars for the past several years in North Carolina, moved to St. Augustine in 2011, and has been helping out at his brother’s dealership. But he was intent on getting a dealership of his own, he said.

“I came down for the opportunity to grow my skills in the new car business,” Joe said. “Obviously, there was an opportunity to work with my brother, which has been an amazing experience. I learned a tremendous amount working with him. He’s a real student of the industry, and where commerce is going, especially related to car sales, of course. I’m also looking forward to building a relationship with this community.”

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We recently bought at 2013 VW Passat TDI from O'Steen in Jax, and we absolutely love the car. 42 MPG overall, 48 on trips Best steering ever. O'Steen has been very good to us. However, it might be nice to get service done locally.